RE Royalties makes investment in Solaris portfolio

Executive Summary

• RE Royalties Ltd. has invested an additional $800,000 in Solaris Energy Inc. for royalties on two U.S. distributed generation solar portfolios.
• The total investment for Portfolio 1 is $4.8 million, with $3 million financed at closing and the remaining $1 million expected to be financed by Q2 2026.
• The total portfolio-level royalty investment is expected to reach $9 million, including a second portfolio subject to due diligence.

Key Details

• Investment Amount: $800,000 (second tranche).
• Portfolio 1 Details:
  • Total royalty purchase value: $4.8 million.
  • Financed at closing: $3 million (announced Jan. 7, 2026).
  • Remaining balance: $1 million, expected to be financed by the second quarter of 2026, subject to conditions.
  • Composition: 15 projects total (9 under construction, several nearing operation, 6 in development).
  • Locations: California, Maine, Delaware, New Hampshire, and Colorado.
• Portfolio 2 Details:
  • Subject to completion of due diligence and customary closing conditions.
  • Expected to close later in the year.
• Total Investment: Expected to reach $9 million at the portfolio level.
• Royalty Terms:
  • Royalty rate adjusted at each advance to target a pre-agreed minimum return.
  • Based on a 25-year period.
  • Royalty continues past 25 years for the remaining life of Portfolio 1 projects.
• Strategic Context: RE Royalties partners with high-quality developers to secure long-term royalties on contracted clean energy assets. Solaris Energy views this as a vote of confidence in its execution and growth trajectory.

Notable Quotes

• Peter Leighton, COO of RE Royalties: "Our continued investment in Solaris Energy reflects RE Royalties' strategy of partnering with high-quality developers to secure long-term royalties on contracted clean energy assets... The commercial and industrial distributed generation market represents a compelling growth opportunity..."
• Nick Perugini, CEO of Solaris Energy: "This second tranche of financing from RE Royalties is a strong vote of confidence in Solaris Energy's execution and growth trajectory... With this additional capital, we're accelerating deployment across our expanding portfolio..."